Earlier this week, Rycal Group announced its expansion into the Asia Pacific region with new offices in China and Singapore. We are excited about this tremendous opportunity for growth, particularly because of what the Asian investment market has to offer.
Asia has a great deal of untapped market potential for Rycal Group, especially in China due to its huge wealth demographic.
- There will be 100M upper-middle class Chinese citizens by 2020
- There will be 3.88M high-net-worth Chinese citizens by 2020
- There will be 280M affluent Chinese citizens by 2020
China boasts some of the wealthiest people on the planet, most whose personal fortunes can dwarf treasuries of medium-sized countries, and the growing population of upper-middle-class Chinese now also has their eyes set on international investments like commercial real estate funds and residential property.
While the number of potential investors who possess vast wealth is exciting, there are many other factors for why Rycal Group targeted Asia Pacific for its expansion. Some of these include:
- With the RMB’s depreciation of 6% against the U.S. dollar for the past 12 months, mainland buyers have a soaring interest in outbound travel and lifestyles are set to boost the outflow investment in lucrative fund market like the U.S. in 2017.
- The implementation of property cooling measures nationwide in China and most recently Hong Kong (a notable playground for Chinese investors) increased the stamp duty on foreign property buyers from 15% to 30%, driving the Chinese investor to cast their eyes on investments outside China and Hong Kong.
- The forecast of 340 million Chinese retirees aged 60 and above by 2030. This massive market of China’s silver generation has substantial funds at their disposal, a hefty share of $2.4 trillion in savings.
- Partnerships with established local broker-dealers, family offices and certified financial consultants (CFA) who have direct access to and vast networks with investors and high-net-worth individuals in Asia.
- Apart from accredited investor and high-net-worth individuals, we see tremendous opportunities for selling into Chinese financial services companies that will capitalize on our high returns funds and offer them under their own restructure funds to local Chinese investors and Institutions.
Rycal Group’s expansion into Asia establishes offices in two of the region’s most strategic financial centers in Shanghai and Singapore. Shanghai will be the center for China and Hong Kong markets while Singapore will be the center for the rest of the Asian countries. These two offices will spearhead our aggressive expansion strategies into China and rest the of the Asian market in 2017.
This is a blog post from Richard Seow, Vice President, Rycal Group. Seow heads the Asia offices for the firm.